SALE OF GOODS ACT1. Define contract of Sale under the Sale of Goods Act 1930. State the essential features of theSale of Goods Act, 1930. Distinguish between sale and agreement to sell.ANS:Contract of sale of goods:A contract of sale of goods is a contract whereby the sellertransfersoragrees to transfer theproperty to goodsto the buyer for a price.The term ‘contract of sale’ is a genericterm and includes both sale and an agreement to sell.Sale and agreement to sale:Under a contract of sale, the property in the goods is transferred from the seller to the buyer.Whereas, under agreement to sell, the transfer of property in the goods is to take place at a futuretime, subject to some conditions.Essentials of contract of sale:Two parties:Buyer and SellerGoods:The goods which form the subject-matter of the contract of sale must bemovablePrice:The consideration for the contract of sale, called price, must bemoney.Goods cannot beexchanged for goods.Transfer of general property:There must be transfer of general property as distinguished fromspecial property in goods from the seller to buyer.Ex: If A owns certain goods, he has general property in goods. If he pledges them with B, B hasspecial property in the goods.Essentials of a Valid contract:Distinction between Sale and Agreement:Sell:SALE1.Transfer of Property: Goods passes from the seller to the buyer immediately.2.Types of Goods: Sale arises only in case of existing and specific goods only.3.Risk Of Loss: If the goods are destroyed, the loss falls on the buyer even though thegoods are in the possession of the seller.4.Consequences of Breach: If the buyer fails to pay the price of the goods, the seller cansue for the price..